Search results
Results from the WOW.Com Content Network
BAU – Business as usual; BEP – Break-even point; BI – Business intelligence; BIC – Bank identifier code; bldg. – Building BLS – Balance sheet; BOM – Bill of materials; BPO – Business process outsourcing
According to the FASB Accounting Standards Update, An entity should measure inventory within the scope of this Update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.
Cost of goods sold (COGS) (also cost of products sold (COPS), or cost of sales [1]) is the carrying value of goods sold during a particular period.. Costs are associated with particular goods using one of the several formulas, including specific identification, first-in first-out (FIFO), or average cost.
If the market price of a good drops below the purchase price, the lower of cost or market method of valuation is recommended. This method allows declines in inventory value to be offset against income of the period. When goods are damaged or obsolete, and can only be sold for below purchase prices, they should be recorded at net realizable value.
That price is usually called the manufacturer's suggested retail price (MSRP), list price or recommended retail price (RRP) of a product and is the price which the manufacturer recommends that the retailer sell the product for. The retail price is normally around 2.5 to 3 x the trade or wholesale price, depending on the markup of the retailer ...
The amount recorded is the actual monetary value of the transaction, not the list price of the merchandise. A discount from list price might be noted if it applies to the sale. Fees for services are recorded separately from sales of merchandise, but the bookkeeping transactions for recording "sales" of services are similar to those for ...
Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the variable cost per unit. "Contribution" represents the portion of sales revenue that is not consumed by variable costs and so contributes to the coverage of fixed costs. This concept is one of the key building blocks of break-even analysis. [1]
Open-book accounting (OBA) is a business practice which opens up an organisation's accounts to some or all of those with an interest in the organisation, including its employees and its shareholders (including those whose shareholding is managed indirectly, for example through a mutual fund) and supply chain. [1]